Nomura anticipates that Indian equities will trade at 20–22 times one-year forward earnings, provided risk premiums stay subdued. The firm had eased its valuation worries back in May 2025, after markets steadied in the aftermath of global tariff-related tensions.

Nomura pegs Nifty 50 target for 2026-end at 29,300: What could drive the index? Explained

Nomura Optimistic on Indian Equities, Sets Year-End Nifty Target of 29,300

Global brokerage firm Nomura has turned optimistic on Indian equities for 2026, setting a year-end Nifty target of 29,300—about 12% higher than current levels.

What's Behind the Positive Outlook?

Easing Geopolitical Tensions: With a blend of steady macro fundamentals and a cyclical rebound in economic activity and corporate profitability.
Policies Focused on Domestic Growth: Enhancing self-reliance and driving structural reforms, which are likely to further strengthen overall market confidence.

Nomura expects policies to support domestic growth with a focus on self-reliance and efforts that seek to address structural issues, said Saion Mukherjee of Nomura.

Corporate Earnings Projections

Cyclical Rebound: Corporate earnings are projected to rebound in FY26 with low double-digit growth led by commodity-linked sectors.
Projected Growth Rates:
- 14.6% for FY27
- 13.2% for FY28

Nomura's Top Stock Picks

Financials: Positive outlook
Pharma, IT Services, Consumer Discretionary, Real Estate, Internet, Cement, Telecom, and Manufacturing: Positive outlook
Autos, Oil & Gas, and Metals: Neutral
Consumer Staples, Infrastructure, Capital Goods, and Healthcare Services: Cautious approach

Nomura has listed top 20 stock ideas which is a mix of large-caps and mid-cap companies.

Disclaimer

This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.